3 Reasons Why You Should Consider Hiring a Tax Attorney

Most Americans think about a tax attorney when they are about to be audited by IRS officers or when they find themselves with legal issues involving their tax returns. However, in most cases the day-to-day operations of their business do not directly involve taxation, or appear not to. Operating in such a way does not make good business sense since it can lead to a number of challenges, such as paying extra taxes that could be avoided, being fined a lot of money, facing jail terms, and wasting too much precious time. That is why it is absolutely important to hire a tax attorney. Let us discuss some of the benefits of bringing a tax attorney on board.

Tax Attorneys know the Changes in Tax Laws

You and I are always too busy and engrossed in the daily running of our business that we rarely have time to keep tabs of the constant changes that take place within the world of taxation. The truth is, every day, new taxation laws are enacted and others amended. Tax attorneys requires are always aware of these changes before they become public knowledge – trust me, they can take years before becoming public knowledge. We could be paying much more in taxes due to lack of knowledge about a new waiver or tax exemption. Ensure you choose a tax lawyer with exemplary qualifications, preferably with masters in taxation online from Villanova University, or any other accredited institution of higher learning.

Must Read: Tips to Choose the Best Tax Attorney

Save Money by Paying less Tax

There are a number of ways that you can pay less tax legally. I am not advocating for dubious means that can get you into trouble, but legal ways to save a little more by paying less tax. Taxation is payable on the adjusted gross income. The good news is that AGI is adjustable and can be manipulated within the confines of the law to lead to lesser taxation. With the guidance of a tax attorney with proper credentials, an online tax degree can suffice; you can adjust your AGI downwards.

For example, taking a mortgage (mortgage interest is deductible from the AGI), investing in a retirement plan such as the 401k, and paying student loans last (interest on student loans is deductible from the AGI) are some of the simple ways of reducing your tax burdens.

There are numerous other legal and intricate ways of significantly reducing the amount of taxes you pay to the government.

Provide Legal Advice

There are instances in our business lives when we cannot take any chances and having a tax attorney can be deemed to be mandatory, such as when starting a business, in the case of mergers or acquisitions, when undergoing an IRS audit, when appealing the outcome of an IRS audit, and when making a huge investment. During these special occasions, never ignore the services or a tax attorney, or you may end up being sorry. There could be hidden assets and liabilities that are taxable and can lead to bankruptcy. Always enter new deals with your eyes wide open.

Maybe hiring a tax attorney will cost you, but in turn you might save thousands. Save time and all the fuss by hiring a tax expert. Make sure you learn as much as possible about taxation and be able to understand what your tax lawyer is talking about. This way, you are in control!